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Archive for 15/05/2009

Improve Energy (and Financial) Performance

Evaluate opportunities for low-cost energy-efficiency improvements that can help you control costs in a down economy.

Having a plan is better than not having one!

”We’ve assisted our clients in looking across there estates portfolio, for opportunities to reduce energy consumption and have found reducing weekend hours to be one of the most cost-effective ways to accomplish this.”

”Utility incentives enable landlords to work proactively with tenants to reduce energy use in buildings with triple-net lease structures, where tenants pay their own utilities.”

In this struggling economy, controlling costs and maintaining competitiveness are paramount, and real estate companies are going back to basics. Leading commercial real estate owners and managers are leveraging energy efficiency as one of the most cost-effective ways to reduce operating expenses and help tenants control costs.

A renewed focus on energy efficiency can support financial goals and maintain asset value while enhancing tenant attraction and retention. Because energy is the largest controllable operating expense for a typical commercial building, reducing energy costs has a significant positive impact on the bottom line. When implemented in a coordinated fashion, you can improve energy performance without spending capital.

Assess Building and Portfolio Energy Performance
“We find that management commitment is essential, and that a vital first step is to assess and benchmark energy performance,” .

 

Low-Cost Energy-Efficiency Best Practices

  • Educate tenants.
  • Adjust temperature setpoints.
  • Set back temperatures in unoccupied spaces.
  • Lock and calibrate thermostats.
  • Reduce water-heater temperatures.
  • Reduce weekend operating hours.
  • Tweak start-up/power-down times.
  • Add VFDs and VAVs.
  • Delamp.
  • Adjust and/or add lighting controls.
  • Retrofit with 25- or 28-watt T8s, CFLs, and LEDs.
  • Perform lighting sweeps.
  • Ensure that equipment is functioning as designed.
  • Reduce janitorial lighting needs.
  • Enhance preventive-maintenance activities.
  • Enhance building-envelope efficiency.
  • Leverage rebates and incentives.

A helpful benchmarking, which generates energy-performance ratings.

Portfolio benchmarking will help you compare properties to identify cost-effective opportunities. For example, immediate improvements to a lower-performing building will bring greater returns than looking to improve a higher-performing building.

Low Costs, High Returns
After assessing performance and identifying buildings to focus on, identify opportunities and implement changes that make sense for those buildings, such as …

Engaging Tenants. “Tenants control a large portion of your building’s energy consumption, so taking the time to engage them in energy-efficiency efforts right away can really pay off in terms of the building’s operating budget and tenants’ utility costs,”. Start by leveraging a campaign to show tenants how to reduce energy consumption immediately. Provide e-newsletters, pamphlets, and signage, and communicate in person to encourage tenants to take simple actions toward greater energy efficiency.

Operations and Maintenance. Operations staff should regularly walk through buildings, inspecting equipment to ensure that it’s functioning as intended, and checking all control equipment for proper programming. An engineer told can find annual energy-cost savings with no or little investment.

If you’re willing to invest money, take this process to the next level via retro-commissioning or recommissioning. According to the US ENERGY STAR Building Upgrade Manual, commissioning projects for existing buildings have a median cost of $0.27 per square foot, but result in whole-building energy savings of 15 percent, with a simple payback of less than a year.

Janitorial activities typically account for almost one-quarter of a commercial building’s lighting usage. Opportunities to reduce that amount include team cleaning, where staff cleans one floor at a time, and lighting is turned on and off as janitors progress through the building. You can also engage janitors and security staff to turn off lights that were left on by tenants. If tenants are amenable, experiment with cleaning during the day when the lights are already on.

A comprehensive preventive-maintenance program establishes appropriate levels of maintenance to be performed at scheduled intervals. The time investment may be substantial, but the returns will also be large – and with a low upfront dollar investment.

Lighting. In some locations, lighting levels may be too high and can be lowered by delamping and disconnecting unused ballasts. Delamping may be accompanied by adding reflectors and new lenses to the fixtures, enabling the fixture to more effectively distribute light. One property reports that it reduced energy costs by more than $100,000 annually just by delamping.

Periodically check occupancy sensors and photocells; re-examine lighting controls to identify new opportunities. For example, reduce the minutes of inactivity after which motion sensors are programmed to shut lights off, or program parking-garage lights by zone to reduce the amount of lighting on at night.

Consider adding new lighting controls where possible. You may be able to install additional occupancy sensors in restrooms, supply closets, mechanical rooms, elevator cabs, and private offices; case studies from ENERGY STAR show that these devices pay for themselves in less than 2 years. Photosensors and dimmable ballasts can be installed indoors near windows, as well as on exterior lights, to take advantage of available daylight.

Another low-cost opportunity is a full-floor lighting sweep – adjust building lights so they’re not hardwired in the “on” position and can be turned off during EMS-programmed lighting sweeps. Also, periodically drive past the building at night to ensure that the programmed sweep is actually taking place, and that all non-emergency lights are included.

Perform a lighting survey to locate any remaining incandescent bulbs, halogens, or T12 fluorescent tubes. These inefficient lamps can be replaced with CFLs, LEDs, or 25- or 28-watt T8 fluorescents. If you’ve retrofitted with 32-watt T8 fluorescents, these are a big step up from T12s, but consider replacing them with high-lumen 25- or 28-watt tubes. Don’t overlook exit signs, accent lighting, elevator cabs, or other unique lighting applications.

Building Envelope
In many commercial buildings, air passes freely between conditioned and unconditioned spaces where pipes and ductwork penetrate walls and ceilings, underneath doors to the outside, and at dampers. Regularly check for these gaps and seal or weatherstrip them to immediately reduce heating and cooling costs. Also, consider conducting a thermal scan of the envelope to reveal more in-depth opportunities to repair air leaks or areas of thermal transmission.

HVAC
Thermostats. Thermostats provide numerous opportunities to improve energy performance. Simply tweaking temperatures can reduce whole-building energy savings by 2 to 4 percent per degree by which setpoints are raised or lowered during the cooling and heating seasons. Talk with tenants to see if temperatures are comfortable, and experiment with adjusting temperatures by a few degrees.

Ensure that vacant space temperatures are set back significantly, or that HVAC equipment is turned off, if practical. Set temperatures back at night and on weekends as well – by at least 10 degrees – using your EMS or programmable thermostats, if you have them (or manually, if necessary).

In addition, limit access to thermostats located in tenant spaces, or program your EMS to allow tenants to make adjustments only within a specified range. If tenants can make frequent adjustments, energy costs will fluctuate wildly and systems will work harder. Be sure that building engineers reset temperatures to optimal setpoints each day so that tenant adjustments are only temporary (if the EMS isn’t doing this automatically).

Have operations staff compare thermostat readings with the actual space temperatures (as measured by a handheld temperature gauge). If necessary, recalibrate thermostats so their readings equal the true space temperatures. The EPA estimates that calibrating thermostats can produce whole-building energy savings of up to 3 percent.

Finally, take a closer look at the thermostat on your water heater. The EPA recommends setting water-heater temperatures to 120 degrees F. as opposed to manufacturer-set temperatures of 140 degrees F.

HVAC hours. Evaluate opportunities to reduce or eliminate unneeded HVAC and lighting by conducting a census to determine when tenants actually use the building. For example, though Saturdays may be part of their lease hours, how many tenants are really working? “Clients should look across there complete portfolio for opportunities to reduce energy consumption, accessing reducing weekend hours to be one of the most cost-effective ways to accomplish this. Working with clients to provide weekend hours upon request rather than across the board,”

There may be similar opportunities to scale back hours during the week. At the very least, ensure that, if a tenant requests after-hours air one weeknight, hours are reset to normal the next day. In addition, experiment with starting up HVAC systems later or powering them down earlier. Chances are good that you’ll be able to reduce HVAC operating hours and still maintain comfortable temperatures.

VFDs and VAVs. With varying levels of demand placed on HVAC systems, motors and fans don’t necessarily need to run at full speed all the time. Variable frequency drives (VFDs) and variable air volume (VAV) devices regulate motors and fans as necessary. Some of the earlier practices will further reduce building loads, making it important to match systems with variable speed technologies. The cost of installing these devices can be recouped quickly – in as few as 2 years, by suggested case studies.

What Now?
This is by no means the entire list of opportunities for energy reductions, but they’re some of the simplest, most cost effective to implement. Even better, they’re proven to work, based on the experiences of thousands of building owners and managers.

Look for more opportunities in A Practical Guide to Energy Management: Enhancing the Bottom Line You can also explore additional options by conducting an energy audit and developing an action plan based on the results.

Further, utility incentives and rebates can make equipment upgrades and retrofits even more financially attractive, potentially moving some measures from the “expensive” category to the “low-cost” category. “Utility incentives enable landlords to work proactively with tenants to reduce energy use in buildings with triple-net lease structures, where tenants pay their own utilities. The utility often help convince tenants to pay for the retrofit in cases where the landlord may not pursue a given capital project because the benefit would flow disproportionately to the tenant.

“Strategically staging improvements is important – the early savings from low-cost measures can buy you some leverage to invest in larger improvements,”. “But, by reducing energy loads first, you may reduce the size of the new equipment you need to purchase, further reducing expenses in these tough economic times.”

You will see tangible results – a real drop in energy costs and, along with that, an increase to net operating income, asset value, and tenant attraction and retention. But, there is no true end to this process. Owning or operating an energy-efficient portfolio is a cycle of continual assessment and improvement, and requires an ongoing commitment.

Building a Zero-Energy Commercial Office

Design Facility is attempting the impossible, bringing the zero-energy building to life
When Integrated Design Associates (IDeAs) Inc., a consultancy that provides electrical engineering and lighting design services out of offices in Colorado and California, bought a former bank building for its new San Jose, CA, operations, it saw immense potential. The opportunity was ripe to bring a concept that so many had talked about and so few had attempted - a zero-energy building - to life. “We felt we should walk the walk, not just talk the talk,” says David Kaneda, principal, IDeAs, San Jose, CA. The goal was a building with net zero energy and zero carbon emissions (or a Z2 building).

The project was planned 2 years ago, when global warming was hardly big news. “CO2 and carbon emissions were not at the forefront of design like they are now,” Kaneda says. “We took a left turn, and I was really nervous about it. In the meantime, the whole world took a left turn and followed along in the direction that we ultimately went.” The original plan was to achieve a LEED Platinum rating from the Washington, D.C.-based U.S. Green Building Council (USGBC), but when Scott Shell, principal, EHDD Architecture, San Francisco, threw out the possibility of turning the IDeAs headquarters into a net-zero-energy building, the idea appealed to Kaneda, who has built a practice on the study of energy and lighting. “What [Shell] was talking about is really our sweet spot,” he explains.

An integrated design team spent countless hours discussing building systems and features, calculating electrical loads, and weighing the costs and trade-offs of equipment and design strategies. Too many skylights would reduce the insulating capabilities of the roofing system; not enough daylight would mean too much dependence on the electrical lighting system. The renovation would have to cut energy consumption as much as possible - everywhere it was possible. All unavoidable energy that is necessary to run the business will be provided through on-site power generation. “If we had designed a traditional building, we would have needed a roof that [was] twice as big as the roof on the building to put enough photovoltaics on it and call it a zero-energy building,” says Peter Rumsey, principal, Oakland, CA-based Rumsey Engineers Inc. While the building will be connected to the utility grid, the hope is that, when the facility is completed and occupied this month, the only things the utility will provide are energy storage and a back-up plan.

The IDeAs headquarters building started out as a 7,200-square-foot, 1960s tilt-up facility that, when purchased in August 2005, had virtually no windows. Not surprisingly, many had labeled it as “the world’s ugliest building.” With a vision for the ultimate environmentally friendly office and a lot of hard work, the facility’s remodel will prove to many that the quest for net zero energy is not without merit. Estimates for the IDeAs Z2 Design Facility in terms of energy use are approximately 56 mWh of energy per year (43-percent below the 2005 California Title 24 energy requirements and about 60-percent below the ASHRAE 90.1-1999 requirements).

The USGBC reports that the building sector is responsible for almost half of all greenhouse-gas emissions in the United States. Without change, the amount of emissions attributed to buildings will continue to rise dramatically over the next 2 decades. “We’re going to need a lot more zero-energy buildings and a lot more integrated thinking,” says Shell. Commercial buildings can reduce greenhouse-gas emissions dramatically: The Z2 Design Facility is proof.

Check out some of the features of the Z2 Design Facility in San Jose, CA …

DIMMING BALLASTS
Dimming ballasts, while less efficient than high-efficiency standard electronic ballasts, are still beneficial. They can start harvesting energy as soon as any daylight is introduced and are less obtrusive when light levels change rapidly.
HEAT PUMP
Producing chilled or hot water for the radiant slab and dedicated outside air handler, the electric water-source heat pump has a cooling energy-efficiency ratio (EER) rating of over 19.
LIGHTING CONTROLS
Occupancy sensors control lighting in most of the building, including restrooms, the kitchen, the conference room, utility rooms, and even exterior lighting -  the only exception is the studio. Some sensors are manual on and automatic off, so lights are only turned on when occupants want them on.
ELECTROCHROMIC WINDOW GLAZING
Electrochromic glazing, or electronically tintable glass, is used in the east storefront of the studio space. It can reduce direct sunlight transmittance from 62 to 3.5 percent and reduces the solar heat gain coefficient from 0.48 to 0.09. Controlled by a low-voltage controller, the glazing has many advantages over blinds.
ENERGY-EFFICIENT COMPUTING
While desktop computers use more energy, laptops with enough memory to support business needs are not cost effective at this time; however, IDeAs is replacing all CRT monitors with LCD flat-screens that use approximately half the power.
BUILDING INTEGRATED PHOTOVOLTAIC SYSTEM (BIPV)
The roof membrane integrated photovoltaic system is lightweight and does not require ballast, special support structure, or structural penetrations. Its solar cells have the highest efficiency (20 to 21.5 percent) of any commercially produced PV cell. The BIPV will supply 100 percent of the building’s net energy use.
DAYLIGHTING
Carefully sized skylights have been installed in the main studio and on the second floor, and provide an average of 111 footcandles at solar noon in summer and 40 footcandles at solar noon in winter. This daylighting strategy will reduce electric light consumption and HVAC loads, as well as provide superior light quality.
RADIANT FLOOR SYSTEM
Using water to provide heating and cooling is more energy efficient than a forced-air system. A topping slab contains cross-linked polyethylene radiant tubing.
OFFICE-EQUIPMENT
SHUTDOWN

Copiers, plotters, and printers continue to use power in standby or sleep mode. After hours, IDeAs’ security system will automatically turn off circuits supplying this equipment when armed and turn on circuits the next day when disarmed.
BUILDING MONITORING SYSTEM
Panelboards using a power monitoring harness will track the performance of the building on a circuit-by-circuit basis; this will allow monitoring of each component of the HVAC system, each lighting circuit, and each receptacle circuit.
COFFEE POT
Because the warming element on the coffee pot remains on all day (and sometimes all night), the company is switching to a single-cup coffeemaker. The old coffee pot and a thermos will be used for large meetings.
DEDICATED OUTSIDE
AIR HANDLER (DOAR)
When CO2 levels above 800 ppm are detected, the DOAR kicks in to manage indoor air quality. Chilled or hot water supplied by the heat pump to the air handler conditions the air delivered to the space.
UPSIZED ELECTRICAL WIRING
As power flows through the wiring, all circuits lose small amounts of energy through resistance. After performing a cost analysis, the decision was made to upsize all branch circuits carrying large continuous loads to reduce wiring losses (this also reduces cooling loads).

Prevent 17 Common Lighting Mistakes

Don’t underestimate the importance of an energy audit. It’s the basis for everything from evaluating the project’s financial worth to manufacturing and ordering parts.

Energy-efficient lighting retrofits offer an extraordinary chance to cut operating costs and improve lighting quality. But, along with the opportunity for improvement comes the opportunity for mistakes.

Some of the most inherent dangers in lighting projects are outlined here. If you follow the guidelines here and avoid these 17 slip-ups, you’ll be pleased with your lighting retrofit project.

1. Choosing the Wrong Team
Energy efficiency is more than the pursuit of energy savings. People are your most important and productive asset, so work-environment quality is critical. A gain in energy savings can be offset by a loss in productivity if quality isn’t part of the evaluation.

A good partner is just as much an experienced consultant as a provider of equipment and installation services. Beware of “instant experience” in energy efficiency. If you choose a quality partner, you’ll go a long way toward avoiding the 16 other costly mistakes.

2. Conflicting Chain of Command
Retrofits involve decisions with multiple objectives, and typically impact various departments. The best projects come from exchange of information among members of a project team taking direction from a project manager with the authority to negotiate from start to finish. If the final decision is made by the purchasing department without an understanding of your objectives, the system you want won’t be the system you’ll get.

3. Neglecting Frontline People
Sure, savings are important, but tenants and occupants will work in the new environment for years to come; if they don’t like it, someone’s going to hear about it. The best way to avoid complaints is to involve your associates from the start. Solicit ideas from experts and others who have completed similar projects. Keep maintenance personnel in consideration, think about replacement of wearable parts down the road, and be sure to include ease of maintenance in all specifications.

4. Calling in Experts Too Late
Before committing to a project, call in the experts. View your energy-services vendor as a partner, not just a supplier. Be sure your partner can stand behind every statement and warranty. When it comes to project management, you should expect these things from a true energy-services partner:

  • Establishment of goals for savings and facility comfort and quality.
  • Identification of project requirements.
  • A comprehensive audit (see No. 5).
  • Proposal development and opportunity to redesign.
  • Testing and evaluation.
  • Implementation.
  • Be sure you clearly outline to all prospective vendors that this is what you want, and be sure you get it.


Energy Use in Commercial Buildings: End-Use Breakdown
If you know how energy use breaks out, you’ll be able to identify opportunities to save energy in your buildings. SOURCE: EIA

5. Underestimating the Importance of an Audit
A retrofit isn’t like a new construction project – there’s no set of blueprints to start from, and usually no pressing construction schedule to keep. It’s the building audit or survey that establishes the foundation for all work to be performed. The audit is the basis for everything from evaluating the project’s financial worth to manufacturing and ordering parts.

Where can things go wrong? There’s the potential for mistakes in identifying existing equipment, its location, and the recommended replacement. There’s the potential to transpose numbers and make errors in tabulation of inventory and scheduling. At LIME Energy, factory-trained technicians use hand-held computers to identify fixtures and equipment by building, floor, room, and suite. Special codes spell out everything, including restricted access, time limitations, special working conditions, and other vital information used by project personnel. This becomes the blueprint for equipment selection, installation, verification, and billing.

6. Using the Wrong Approach
Manufacturers want you to buy their products – even if they portray them as “generic” as part of an overall installed solution. The trick is to get lighting, HVAC, motors, drives, and other energy-using equipment to work together. When you use a systems approach, you can achieve maximum savings and improve quality.

First, establish your objectives for light level, temperature, airflow, and hours of operation, and don’t assume that anything you have must stay the same. For example, most overhead lighting creates unacceptable glare on computer screens, and most desk work can be done with task lighting; a redesign of the entire lighting system may save much more energy than simply changing the existing equipment to the most efficient.

The only way you know you’re making the best choices for energy efficiency is to look at the entire building as a system.

7. Buying Based on Price
Energy-saving retrofit projects bought on price alone are usually a false economy. The few pennies saved upfront can cost thousands in lost savings, increased maintenance costs, and losses in worker productivity. Since the energy savings are paying for the project, why not choose higher quality and avoid risky situations, even if it means adding a few months to the payback?

Ask a qualified contractor to quote the steps of analyzing, designing, and installing a retrofit project, and you’ll know the fair market value for these services. Beware of the company that undercuts the going market price; it’s easy for vendors to cut price if they know how. They can:

  • Use untrained labour.
  • Substitute lower-grade material or use less material.
  • Bid unreliable or untested technology.
  • Supply discontinued products from vendors.
  • Use a commodity design instead of a custom product.
  • Cut corners on installation.
  • Skip permits.
  • Fail to pay suppliers.
  • Ignore UL requirements.

To an untrained observer, these tactics may go unnoticed, so establish criteria for product quality, and the quality of the installation work and crews, and communicate this to potential vendors before sending out for quotations.

8. No “What-If” Planning
A retrofit project impacts almost everyone, so consider the “what ifs.” It’s easy to identify and plan for anything if you take advantage of the expertise that a qualified company offers.

Take light-level readings and measure space temperatures before and after throughout your facility without telling anyone. That way, you’re prepared for the occasional troublemaker who insists that he or she can’t work because of unacceptable changes to the way things were before. Nothing resolves a dispute better than facts.

Prepare a project book that documents your work before and after. Senior management can’t help but be proud of you … the new corporate hero who saved them lots of money.

9. Not Testing Thoroughly
The greatest part of a lighting retrofit is that it lends itself to verification. Take readings before and after in the same locations, and gather information over time. Use the same metering equipment and account for cleaning, age, and sunlight location when making comparisons. Gathering information will enable you to verify the potential of a retrofit project every time.

10. Botching Up Installation
After a proposed design has been evaluated, you must develop an installation plan of action. Lacking coordination, installation can become a nightmare. Everyone needs to be informed and ready to cooperate. Communication should be in writing; otherwise, you’ll find yourself arguing with an associate or vendor about who ordered the wrong part or model. (You’ll also argue about who’s going to pay for the mistakes.)

Make sure your contractor has successfully worked in an environment similar to yours. Just as important, your vendor should be willing to provide an installation checklist that spells out every step, from security access and clean-up to special equipment needs.

11. Falling for “Bargain” Products
Ask for a warranty. Then, read between the lines. Does the warranty cover what it would take to replace a product in the event of a failure? Be sure to get a performance warranty that covers material, design, and installation.

Next, check your vendor’s financial net worth. There’s no value in a warranty if the company offering it has no assets. Taking the time to carefully evaluate technologies and vendors will pay handsome dividends in savings and improved building comfort and operations. Regardless of the price, it’s no bargain if it doesn’t work.

12. Failing to Scrutinize Proposals
Go back and look carefully at the proposals you’ve received. Check facts and figures; then, double check.

Most of the information you’ll need to make a decision is contained within the audit report: one more reason you can’t underestimate the value of the comprehensive audit and the complete, clear design proposal.

Another important point: Choosing a company without adequate financial resources can be dangerous. Invariably, there are always some adjustments to be made on a retrofit project. Your energy-services project provider must be able to absorb those costs and deliver as promised. An inability to pay suppliers, limited credit lines, or cash-flow problems can lead to delays and liens. If there are major problems, the customer becomes the natural focus for legal recourse.

13. Celebrating Too Soon
Sometimes, a retrofit test can fool you. The light-level readings you obtain today may not stay within an acceptable range over time. Depending on the lamp selected, different lumen maintenance curves apply. Over time, lamps will lose their brightness, shown on the lamp lumen depreciation curve. Also, dirt and dust accumulation must be factored into the equation. Always evaluate your proposals based on light-level readings that will be maintained over time.

14. Holding Back Too Long
There are two main reasons why companies hold back. One reason is corporate inertia. After all, the building is usually comfortable, and the lights still work; no one is complaining. With constant on-the-job pressures, who has the time for anything but today’s most urgent crisis? The other reason for delay is to wait for a new rate schedule, rebate, or technology.

But, the truth is, the savings you gain from a properly planned lighting retrofit almost always outweigh other considerations. Take advantage of energy savings now. Delaying a decision in anticipation of any future possibility means you’ll miss out on immediate savings.

15. Using “Average” Electricity Rates to Calculate Savings
While your average electricity rates can provide a quick feel for a project’s potential, actual electricity bills should be used to determine your savings. A common mistake is overlooking the rate structure that applies to your business.

Check with your utility to make sure the savings assumptions in the proposal are based on the correct rate structure.

16. Falling in Love with the Hardware
Sometimes, in the excitement of evaluating new technology, we lose sight of original objectives. For example, sophisticated control features can be appealing, but are often difficult to justify in terms of cost. You don’t want to pay for features you won’t use, or that are unnecessary.

It’s one thing to understand how technology works – what’s more important is how it’s applied.

17. Overlooking Opportunities
It’s a big mistake to believe that installing new equipment to save energy is “not in the budget.” That’s like saying you can’t afford to save money. The mere act of paying your electricity bill means there’s cash waiting to work for you.

To begin with, financial programs are available that will create positive cash flow from the start. In turn, a properly designed program virtually guarantees that your monthly savings will exceed your monthly payment.

If you’re a real estate developer or a building owner, make your space more competitive by upgrading to improved air-conditioning with better controls and better-looking light fixtures with appropriate light levels. An attractive, efficient building is one more step toward higher tenant retention.

Mistakes happen. Keep in mind that an energy-efficiency retrofit is more than the sum of component parts. These retrofit projects, by their very nature, require an educated buyer to sort through competing claims and ensure that quality and service are part of the evaluation process.

Bank of America Creates World Class Infrastructure to Remotely Manage 3,200 Branches

In January 2008, Bank of America Corporation (BAC) launched a centralized facilities energy and maintenance management program designed to aid associate health and productivity and contribute to the corporation’s bottom line while diminishing its environmental impact. The Charlotte-based Intelligent Command & Control Center (iC3) integrates industry-leading hardware, software, analytics and intelligence to remotely monitor and control heating, ventilation and air conditioning (HVAC), lighting and other building systems for thousands of facilities across the nation. All from a single location.

While energy management systems may not be new, their use traditionally has been reactive engagement in large facilities. iC3 uniquely addresses facilities of any size, proactively using data, innovative patented analytics and highly-skilled technicians to maximize energy efficiency and optimize equipment maintenance. Its current scope comprises 3,200 nationwide retail banking centers that utilize more than 13,000 HVAC units.

Several partnerships and strategic investments have contributed to iC3’s success. Charlotte-based Mechanical Systems and Services (MSS) is the General Contractor and Systems Integrator for the program’s nationwide deployment. Tridium provides the innovative technology platform that enables the remote monitoring, control and data efficiency. In addition, as part of the iC3 program, BAC made a strategic investment in Philadelphia-based Field Diagnostic Services, Inc. (FDSI), a small engineering firm focused on optimizing HVAC equipment performance.

With FDSI’s help, iC3 provides HVAC equipment fault detection, efficiency diagnostics and control algorithms. FDSI currently holds four patents, with two patents pending and another two in development. iC3 is driving the completion of these and other industry-leading intellectual property innovations through capital investment, intellectual collaboration, an aggressive energy-efficiency strategy and the provision of an expansive facility base as a test-bed. This innovation combined with great hardware out in the field enables the Bank to achieve the shift to predictive maintenance.

As HVAC units typically account for more than 40% of a building’s total energy consumption, the environmental and energy usage benefits of proactive monitoring and improved performance are clear: Since iC3’s inception just more than a year ago, energy (kWh) consumption and greenhouse gas (GHG) emissions have decreased approximately 11%. To date, iC3 has saved more than 4,100 tons of CO2e. At full deployment, iC3 is designed to save over 2,200 tons of CO2e a month (26,850 tons per year), and by 2017 is forecasted to save more than 225,500 tons of CO2e. Overall, iC3 forecasts sustainable reductions in kWh consumption and GHG emissions of 10% to 15%. This comprises nearly half of Bank of America’s 2004 aggressive, voluntary goal of reducing GHG emissions across the company 9% by the end of this year, the EPA Climate Leaders pledge (the bank is poised to achieve that mark, with 2007 GHG emissions down 7.8% from the 2004 baseline). To put these environmental benefits in context, these energy and GHG reductions equate to powering over 800 homes for a year and the removing the GHG emissions of 11 million miles from cars.

Actual energy consumed in iC3-enabled locations has been down year over year despite utility cost inflation. When real savings and inflation avoidance are combined, iC3 is yielding a 10% to 15% benefit to the company’s bottom line in these locations, which translates to millions of dollars annually.

A final benefit of the iC3 program is minimizing non-productive or miss-categorized maintenance visits related to HVAC and lighting, which historically have accounted for a third of the reported problems that resulted in technician dispatch (or “truck roll”). Issues surrounding client “perception” (i.e. that a space is too hot or too cold when all equipment if functioning as designed) now are resolved remotely through the iC3 web-based software platform and customer interaction/education. Meanwhile, verified equipment failures can be reduced in severity from “emergency” to “planned” by remotely making appropriate adjustments to other equipment supporting the space. Optimized truck rolls cut operations costs while eliminating unnecessary driving emissions.

Consistent temperature control in associate workspace and customer-facing locations. Proactive monitoring and adjusting of remote systems. Decreased energy usage. Diminished environmental impact. iC3 is an example of how Bank of America Corporate Workplace helps distinguish the company from its competition by delivering innovative, environmentally sustainable real estate and workspace solutions.

Centrica has bought a 20% stake in EDF’s nuclear business

British Gas owner Centrica has bought a 20% stake in EDF’s nuclear business - formerly British Energy - for £2.3bn while EDF has reciprocated by buying a controlling stake in Centrica’s Belgian supply business SPE for £1.2bn.

The deal will make Centrica an equity stakeholder in EDF’s existing and any future nuclear business in the UK

EDF and Centrica will also form an 80/20 joint venture to pursue a planned programme to build four new nuclear power stations in the UK. Finally, the EDF Group will acquire Centrica’s 51%. stake in Belgian generation and supply business SPE.

Centrica’s bid will invest £2.3bn for the 20% in Lake Acquisitions, the vehicle through which EDF acquired British Energy, 6% less than the price EDF offered in January, which also gives Centrica 20% of the company’s liabilities.

Chairman and Chief Executive of EDF, Pierre Gadonneix, said: “This transaction, part of the group’s strategy of developing its positions in Europe, will enable leading British generator, Centrica, alongside EDF, to take part in the re-launch of nuclear energy in the United Kingdom through an industrial partnership in a form already pioneered by EDF in China and the US.

“This transaction will also help balance both the generation and supply businesses of EDF Energy. The asset swap in this deal will also see the EDF group reinforce its Benelux presence by becoming the second-largest generator in Belgium,” he said.

Centrica will have a 20% stake of the available power from the British Energy fleet, and buy 18TWh of power at market prices over five years from 2011.

The companies plan to construct, operate and decommission four European Pressurised Reactors, designed by Areva. Two reactors are under construction - one at Flamanville on the north French coast, and a second at Olkiluoto in Finaland.

Chairman of Centrica, Roger Carr, said: “The deal represents good value for Centrica shareholders, improves the strategic balance of our business and further underpins our green energy credentials.

“The attractive price secured for the sale of SPE will help preserve our balance sheet firepower as we focus the group on growth opportunities in the UK and North America,” he said.

London Array gets green light

Billed as the largest offshore wind farm in the world, the London Array offshore windfarm today got the go-ahead with an investment of €2.2bn (£1.97bn) by project partners E.On, Dong and Masdar.

The first phase will involve building the first 630MW phase of the 1GW wind farm in the Thames Estuary between the coasts of Kent and Essex. Once complete, it will provide enough power for 750,000 homes - equivalent to one quarter of those in Greater London.

The first power from the London Array scheme is expected to feed into the grid by 2012.

Prime minister Gordon Brown and climate change secretary Ed Miliband welcomed the announcement. “The London Array is a flagship project in our drive to cut emissions by 80% by 2050 and meet future energy needs,” said Brown. “The UK is a world leader in offshore wind farms, creating jobs and prosperity for the economy. That’s why we have increased our support for this technology as we move towards a low carbon future. “E.On, DONG and Masdar are to be congratulated for their work on the London Array.”

“This is another green light for green energy. It’s a vote of confidence in the support the Government has put into backing renewable energy,” said Miliband. “The UK is already the world’s leading offshore wind power and this multi-billion pound project will help keep us there, cut our carbon emissions and contribute to secure energy supplies.”

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